Related topics and other people speaking on it

In this page, you will find a list of 54 quotes from Bill Gross, from different articles. We analyzed 35 articles in which Bill Gross has been quoted in topics like Fed and Yellen. Bill Gross’s most recent quote is: “It's very important, I think, in a levered economy not to have a flattening yield curve from this point forward and I think the Fed is beginning to believe that.”. To see more examples Bill Gross’s views and opinions, check out the section below.

Automatically powered by

Related topics and other people speaking on it

Bill Gross quotes

Equity markets are priced for too much hope, high-yield bond markets for too much growth, and all asset prices elevated to artificial levels that only a model driven, historically biased investor would believe could lead to returns resembling the past six years, or the decades predating Lehman. High rates of growth, and the productivity that drives it, are likely distant memories from a bygone era.feedback

Optimists claim that the future benefit of smartphones and medical technology have yet to have an impact and that eventually - much like the introduction of the automobile - they will lead to a resumption of historical trends.feedback

Can the Trump agenda re-create 3 percent growth? Well now, that is the investment question of the hour/day/decade and its conclusion, unlike romance on a desert island, will determine the level of asset prices across the investment spectrum. Then there is the obvious connection between recent years' low levels of private sector investment, which perhaps begs another question as to why that is so low.feedback

I knew I didn't have much to gain except for my self respect. I thought I was treated unfairly on the way out from Pimco ... They fired me without really giving a reason for it. There was a small coup of individuals that threatened to resign if I didn't.feedback

Once [ECB President Mario] Draghi begins to taper, that probably won't happen for a few months, but once he begins to taper and reduce that $80 billion a month, once that zero to 10 basis point cap is eliminated in Japan, then hell could break loose in terms of the bond market on a global basis.feedback

The U.S. and indeed the global economy is walking a fine line due to increasing leverage and the potential for too high (or too low) interest rates to wreak havoc on an increasingly stressed financial system. Be more concerned about the return of your money than the return on your money in 2017 and beyond.feedback

In China, the ratio has more than doubled in the past decade to nearly 300 percent. Since 2007, China has added $24 trillion worth of debt to its collective balance sheet. Over the same period, the U.S. and Europe only added $12 trillion each. Keeping the cost of credit at a yield that is not too high, nor too low, but just right. (Federal Reserve chair) Janet Yellen is a modern day Goldilocks.feedback

The U.S. and indeed the global economy is walking a fine line due to increasing leverage and the potential for too high (or too low) interest rates to wreak havoc on an increasingly stressed financial system. Be more concerned about the return of your money than the return on your money in 2017 and beyond. In the U.S., credit of $65 trillion is roughly 350 percent of annual GDP and the ratio is rising.feedback

Our highly levered financial system is like a truckload of nitro glycerin on a bumpy road. One mistake can set off a credit implosion where holders of stocks, high yield bonds, and yes, subprime mortgages all rush to the bank to claim its one and only dollar in the vault. Today, central bank flexibility is not what it was back then. Yields globally are near zero and in many cases, negative. Continuing QE programs by central banks are approaching limits as they buy up more and more existing debt, threatening repo markets and the day to day functioning of financial commerce.feedback

In order to control volatility, and keep a floor under asset prices, central bankers may be trapped in a QE-forever cycle, (in order to keep the global system functioning). Withdrawal of stimulus, as has happened with the Fed in the past few years, seemingly must be replaced by an increased flow of asset purchases (bonds and stocks) from other central banks.feedback

Quantitative easing will continue even though the dose may be reduced in future years. But while a methadone habit is far better than a heroin fix, it has created and will continue to create an unhealthy capitalistic equilibrium that one day must be reckoned with. A $12 trillion global central bank balance sheet is PERMANENT – and growing at over $1 trillion a year, thanks to the ECB and the BOJ. An investor must know that it is this money that now keeps the system functioning.feedback

I think fiscal policy is the dominant trend in the United States. But let's not forget other central banks and the minute that they stop buying bonds is the minute that the bear market in bonds may begin.feedback

There's no doubt that many aspects of Trump's agenda are good for stocks and bad for bonds near-term – tax cuts, deregulation, fiscal stimulus, etc.. But longer term, investors must consider the negatives of Trump's anti-globalization ideas which may restrict trade and negatively affect corporate profits.feedback

If 2.6 percent is broken on the upside ... a secular bear bond market has begun. Watch the 2.6 percent level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important than dollar/euro parity at 1.00. It is the key to interest rate levels and perhaps stock prices in 2017.feedback

Trump's policies may grant a temporary acceleration over the next few years, but a 2 percent longer term standard is likely in place that will stunt corporate profit growth and slow down risk asset appreciation.feedback

Happiness has dominated risk markets since early November and despair has characterized global bond markets. Are risk markets overpriced and Treasuries over-yielded? That is a critical question for 2017.feedback

We shall see whether Republican/Trumpian orthodoxy can stimulate an economy that in some ways is at full capacity already. To do so would require a significant advance in investment spending which up until now has taken a backseat to corporate stock buybacks and merger/acquisition related uses of cash flow. I, for one, am skeptical of the 3 and more confident of the 2.feedback

I do think that if Trump wins, it's a dollar negative for developed countries. It's equity negative because of the potential volatility. It's bond market negative because of the spending and the tax reductions, in terms of potential and higher inflation.feedback

He's a bigger spender than Clinton, at least in terms of his tax cuts and potential policies. He's attacked the Fed over the past few months and that's not necessarily a positive in terms of independence for the Fed and the potential for inflation going forward.feedback

Our argument is that NIMs (net interest margins) for banks, and the solvency of insurance companies and pension funds with long dated and underfunded liabilities, have been negatively affected and that ultimately, the continuation of current monetary policies will lead to capital destruction as opposed to capital creation.feedback

A commonsensical observation made by yours truly and increasing numbers of economists, Fed members, and corporate CEOs (Jamie Dimon amongst them) would be that low/negative yields erode and in some cases destroy historical business models which foster savings/investment and ultimately economic growth.feedback

At some point investors – leery and indeed weary of receiving negative or near zero returns on their money, may at the margin desert the standard financial complex, for higher returning or better yet, less risky alternatives.feedback

With Yellen, there is no right or left hand – no 'on the one hand but then on the other' – there are only decades of old orthodoxy that follows the tarnished golden rule of lowering interest rates to elevate asset prices, which in turn could (should) trickle down to the real economy.feedback

All have mastered the art of market manipulation and no - that's not an unkind accusation - it's one in fact that Ms. Yellen and other central bankers would plead guilty to over a cocktail at Jackson Hole or any other get together of Ph.D. economists who have lost their way.feedback

The Fed, with their focus on low interest rates, is distorting the savings function, not only in the United States but on a global basis, and savings of course is connected to investment. Ultimately I think that's what reduces real economic growth going forward and they don't realize that.feedback

Banks, insurance companies, pension funds and Mom and Pop on Main Street are stripped of their ability to pay for future debts and retirement benefits. Central banks seem oblivious to this dark side of low interest rates. If maintained for too long, the real economy itself is affected as expected income fails to materialize and investment spending stagnates.feedback

I knew I didn't have much to gain except for my self respect. I thought I was treated unfairly on the way out from Pimco: They fired me without really giving a reason for it. There was a small coup of individuals that threatened to resign if I didn't.feedback

It's like first-grade math. Here's a non-wonkish statement: When money yields nothing, then it will return nothing. So, when bonds have a zero percent interest rate, or negative interest rate, then there's nothing to gain from owning them.feedback

The reliance on historical models in an era of extraordinary monetary policy should suggest caution. Logically (a concept seemingly foreign to central banks staffs) in a domestic and global economy that is increasingly higher and higher levered, the cost of short-term finance should not have to rise to the level of a 10-year Treasury note to produce recession.feedback

The adherence of Yellen, Bernanke, Draghi, and Kuroda, among others, to standard historical models such as the Taylor Rule and the Phillips curve has distorted capitalism as we once knew it, with unknown consequences lurking in the shadows of future years.feedback

The Fed as the global central bank, if it intends to raise and if it intends to sell back into the market like it suggests, would put pressure upward pressure on the dollar, and that is a consideration that must be taken into account by the global central bank. An investor simply has to realize that the days of double digits are over and that under this scenario and the Fed's mild, perhaps significant tightening posture as evidenced by this statement, dividends are going to be key going forward.feedback

Making money with money is an inherently acceptable ingredient in historical capitalistic models, but ultimately it must then be channeled into the real economy to keep the cycle going. Capitalism's arteries are now clogged or even blocked by secular forces which when combined with low/negative yielding 'safe' assets promise to stunt U.S. and global growth far below historical norms.feedback

In terms of Yellen, I think it's interesting that he's reversed there as well. He likes Yellen now. He thinks that maybe he'll reappoint her. He's got three to five appointments going forward in terms of the Fed. You know, I would expect him to appoint dovish types of governors and presidents so expect a dovish Fed going forward and easy money policy as well.feedback

Most quoted people

It's more than a school subject, or the periodic table, or the properties of waves. It is an approach to the world, a critical way to understand and explore and engage with the world, and then have the capacity to change that world, and to share this accumulated knowledge.

When the book is closed on retail this quarter, we're going to have two different narratives: there are the companies that Amazon can crush and the companies that Amazon should admire or perhaps even fear.

The president's address to the leaders of more than 50 Arab and Muslim nations was a historic turning point that people will be talking about for many years to come. He did exactly as he promised in his inaugural address: united the civilized world in the fight against terrorism and extremism.